Dáil Éireann Debate, Wednesday - 16 January 2013
360. Deputy James Bannon asked the Minister for Public Expenditure and Reform his plans to change the procurement legislation which prohibits smaller construction companies from tendering for projects in view of the fact that the criteria for tendering for the majority of contracts are based on each company's previous year's turnover; and if he will make a statement on the matter. [1468/13]
View answerThe assessment of a tenderer’s financial and economic standing is a key part of any procurement process because tenderers must have the necessary capacity to carry out a contract. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. My Department has developed specific national guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects, published as part of the Capital Works Management Framework, which is available at www.constructionprocurement.gov.ie. In this regard, it is important to point out that there are no centrally imposed requirements for a minimum turnover. Such requirements would logically be developed on a case by case basis with reference to the specific needs of the contract.
The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines (Circular 10/10) to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. In relation to suitability criteria, the guidelines stress that public bodies must ensure that any criteria/turnover levels set by them must be both justifiable and proportionate to the needs of the contract.
